Cox Insurance will make IT savings upto £4m a year after announcing a ten-year outsourcing agreement with CGI Europe last week.

The US giant would manage Cox's IT services and would represent an 18% reduction in Cox's IT operating costs, said Cox chief executive Neil Utley.

"There is the cost saving but equally like any insurer we had a backlog of IT services and contracts.

"So we decided to outsource 200 people because we couldn't offer them the career advantages that CGI can.

"This deal is equivalent to a third of CGI's workforce in the UK," said Utley.